Last week was quite interesting in the crypto circle — Chainlink (#LINK ) has been making strides throughout the month! 🔥 Despite fluctuations in Bitcoin BTC #比特币远古巨鲸持续出清 , LINK bulls have performed impressively, rising 38.6% in the past 30 days, making many investors eager.
🌐 On-chain activity continues to heat up
An important supporting factor behind this rise of Chainlink is the on-chain activity. According to Glassnode data, the number of new LINK addresses has been rising since June, reaching 2,163 new addresses as of the time of writing, very close to the level in November 2024.
Active addresses are also rising, with current data approaching levels seen in November 2021. This indicates increased network activity, with more people starting to pay attention to and use the LINK network, leading to heightened on-chain activity. 📈
Simply put: high on-chain activity means more users are participating in ecological activities, which usually provides some support for the price. For long-term holders and potential investors, this is undoubtedly a positive signal.
It is worth noting that although on-chain activity is increasing, historically, this pattern often accompanies periodic price corrections, so investors need to remain rational and not blindly chase highs.
🔍 The NVTS indicator suggests potential upward space
In addition to on-chain activity, the Network Value to Transaction ratio (NVT) is also an important indicator for assessing whether LINK's valuation is reasonable. A lower NVT value indicates that the asset is undervalued relative to its transaction volume, while a high NVT may indicate overvaluation.
Currently, LINK's NVTS has returned to levels seen in early November 2024. At that time, LINK rose from $10.56 to $29.26, demonstrating remarkable performance throughout the rising cycle. This gives the market a hint: if historical patterns repeat, Chainlink may still have room for further upward movement.
Of course, this does not guarantee that history will repeat itself, but at least from a technical and on-chain data perspective, bullish forces still exist in the short to medium term.
Additionally, if BTC or ETH continues to rise in the future, it may also bring funds into LINK, providing further support for the price. In other words, the combination of on-chain activity, NVTS, and the overall market trend provides a reasonable logic for Chainlink's rise.
📊 Technical Analysis: Key Support and Target Price
From a technical perspective, Chainlink's trend is also worth noting. For example, on the 4-hour chart, LINK is operating within a rising channel, with an overall healthy trend.
Key support/resistance range: $24.3–$25
Short-term target: $29.26
Recently, the price has broken through the resistance level of $24.88 and is expected to retest the support level. If the support range holds, there may be further short-term attempts to hit the channel high.
Moreover, various indicators also give a bullish signal:
The moving average shows that buying power is dominant
The Momentum Oscillator remains in the rising zone
The Accumulation/Distribution (A/D) indicator shows active buying
In summary, the interplay of technical factors, on-chain activity, and market fund inflows gives LINK potential for short to medium-term upward movement.
📌 Summary
Last week, Chainlink performed brilliantly, with an accumulated rise of 38% in August. Not only did the price rise steadily, but the on-chain activity and NVTS signals also supported the bulls.
Short-term key support: $24.3–$25
Short-term target price: $29.26
Potential driving forces: on-chain activity, new addresses, NVTS signals, and funds flowing into BTC/ETH
If these conditions align properly, Chainlink may still have room for further upward movement. For investors, maintaining rationality, focusing on support ranges and market trends, and making judgments based on on-chain data is a reasonable strategy. 💪
In short, the short-term trend of Chainlink is promising, but everyone should also be aware of the risks and not be frightened by short-term fluctuations or impulsively chase highs. Historical data and on-chain activity provide references, but the ultimate market direction still requires careful observation.
✍️ Remember to DYOR, manage risks well, and wish everyone smooth sailing in the crypto world! 🌊
Many understand the trend, but few follow the right rhythm.
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